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What is Revenue and Cost Analysis Summary about?
This document presents the revenues and costs for an oil production project over 5 years under different inflation and escalation scenarios. It shows that with a 12% discount rate: 1) The escalated pre-tax internal rate of return is 38% while the pre-escalated IRR is 29% 2) The net present value using escalated before-tax cash flows is $6,461.97 3) Under constant dollar assumptions, the internal rate of return is 32% which is lower than the escalated IRR but higher than the pre-escalated IRR.
- Author
- StevenMagenheim
- Language
- EN